Despite the flood risk and problems across the UK now and over the last decade, it seems to not have affected property price growth in flood risk areas.
Research by GetAgent, using house price data for the areas marked as the most at risk in England by the Environment Agency, shows that in the last 10 years, house prices in England have increased by some 49 per cent. While prices in areas marked at risk of flooding have trailed marginally behind at 47 per cent.
However, house price growth in the wider counties in which these flood risk locations are found has only increased at 45 per cent during the same time frame suggesting flood risk areas are outperforming the more local market.
In areas where the total number of properties with a significant likelihood of flooding sits between 2,500 and 5,000, flood hit house prices are up 49 per cent to just 47 per cent across their respective counties.
In areas where the total number of properties with a significant likelihood of flooding sits between 5000 and 7,500, flood hit house prices are up 44 per cent compared to 42 per cent in the wider areas.
Areas where 7,500 to 10,000 properties have a significant likelihood of flooding have seen lower house price growth at 38 per cent compared to 42 per cent across the wider areas over the last 10 years, but those areas most at risk with 10,000 or more homes at risk of flooding have seen prices increase 46 per cent in the last 10 years, compared to just 39 per cent at county level.
However, while all flood risk areas in the list have seen prices increase over the last 10 years, there are some that have trailed behind the wider area when it comes to this level of growth.
North Lincolnshire is the worst affected, with local house prices slumping -16 per cent behind growth seen across Lincolnshire as a whole. East Hertfordshire house prices have trailed growth across Hertfordshire as a whole by -9 per cent in the last decade.
Founder and CEO of GetAgent.co.uk, Colby Short, commented: ‘Of course, on a case by case basis, flooding is costing homeowners thousands upon thousands and those worst at risk year in year out will no doubt struggle to sell at a decent price as a result.
‘However, looking across the nation at the top line, the risk of flooding is yet to dampen house price growth across the majority of these most at risk areas and in fact, house prices in a lot of flood risk areas are climbing at a faster pace than the wider areas they are situated within.
‘When you also consider that many of our major towns and cities are naturally home to more buoyant house prices but are located on or near major waterways, then it makes sense that prices will remain high regardless of the dangers.’
Source: Residential Landlord